| Tue 18 Sep 2001, 0:00 | | Capestar - Final Results For The Year Ended 30 Jun |
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CAPESTAR GROWTH INVESTMENTS LIMITED
("CAPESTAR")
Formerly Towles Edgar Jacobs Limited
Reg no. 1951/004039/06
SHARE CODE: CST
ISIN CODE: 000013116
Final Results for the Year Ended 30 June 2001
INCOME STATEMENTS
Year Ended Year Ended
30-Jun-01 30-Jun-00
Notes Audited Audited
R000s R000s
Income before taxation 1,565 17,115
Taxation 2,100 921
Income after taxation -535 16,194
Share of retained income of
associate companies 0 606
Earnings attributable to
ordinary shareholders -535 16,800
Headline earnings per ordinary share
(cents) -3.8 133.0
Earnings per ordinary share (cents) -3.8 133.0
Number of shares issued:
- ordinary shares of 50c each 14,106,171 14,106,171
- convertible preference shares
of 0.1c each 1 982,158 982,158
BALANCE SHEETS
Employment of Capital
Fixed Assets 0 51
Investments in associate companies 2 1,142 8,207
Loans to associate companies 3,628 0
Investments 27,500 0
Current Assets 5,409 29,254
37,679 37,512
Capital Employed
Shareholders' interest 6,968 36,422
Current Liabilities 30,711 1,090
37,679 37,512
NOTES
1. Convertible Preference Shares
Based on the closing CapeStar share
price on 30 June 2001 of R2,35 (2000: R2,15),
and the existing preference
share conversion mechanism, these
would convert into nil ordinary shares
at 30 June 2001.
2. Associate Companies
These represent all of CapeStar's
investee companies which have been
accounted for under the equity method.
Shares at cost 3,058 8,207
General realisation provision -1,916 0
Carrying value of associate companies 1,142 8,207
3. Net Asset Value
The net asset value per CapeStar share,
after the cash distribution
of R4.25 per share effected in January 2000
and dividend distribution
of R2,05 a share on 7 August 2001,
is calculated as 49c at August 2001.
Fully diluted ordinary shares in issue 14,106,671 14,106,671
4. Statement of Changes in Equity
Equity at beginning of period 36,422 72,917
Shareholder distributions 28,919 53,288
Loss (Profit) for period 535 -16,793
Equity at end of period 6,968 36,422
5. Consolidated Cash Flow Statement for
year ended 30 June 2001
Inflows from operating activities 1,843 -504
Sale of Fixed Assets 35 144
Disposal of Investments 13,679 32,818
Decrease in Loans 660 563
Short-Term Investments -27,500 -53,288
Net Decrease in Cash -11,283 -20,267
Cash at Beginning of Period 11,582 31,849
Cash at End of Period 299 11,582
OVERVIEW
As announced in the interim report of 31 December 2000, the only remaining
portfolio investment is Amalda Trading (Pty) Ltd. trading as Peoples
Furnishers. The disposal of this investment has proved to be extremely
difficult. The results achieved during the second half of the year have
been poor due to poor trading conditions and the need to increase the
provision for bad debts. Peoples operates in a difficult environment which
has been affected by the downturn in the fruit industry, where many of
Peoples customers are employed. As a result the investment has been written
off and arrangements made for the loan to be refinanced externally.
PROSPECTS
As previously announced, the intention is to liquidate the company. To date
amounts of R4,25 and R2,05 have been refunded to shareholders. The final
capital distribution is expected to be in the 45 cents to 50 cents area
depending on costs and tax implications. This is slightly less than
previously anticipated due to the poor performance of Peoples, but the total
of R6,75 to R6,80 is in line with original expectations. The directors will
shortly be calling a special general meeting of shareholders to vote on a
recommendation to liquidate the company and distribute the proceeds to the
shareholders.
On behalf of the Board: Transfer Secretaries: Registered Office:
F A Sonn (Chairman) Mercantile Registrars c/o Brait
N O Davies 10 Floor 9 Fricker Road
(Chief Executive Officer) 11 Diagonal Street Illovo, Sandton
Johannesburg, 2001 2196
Directors: F A Sonn (Chairman), A C Ball, N O Davies, H J Terreblanche, P G
A Wrighton
